Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 12th February 2015 Commons Chamber

[Vince Cable]

I will do my best to answer the second, third and fourth of the hon. Gentleman’s six questions, which related to the trade deficit. Clearly, if we look at the trade deficit in terms of services as well as goods, and if we look at capital flows, including inward investment, the position is a very positive one. I do have to record—I am sure he is aware of this—the extreme alarm now being expressed in business circles about the possibility of a Conservative Government, creating a great deal of uncertainty in this area. There is uncertainty about a prolonged hiatus as the conditions which he is seeking have to be negotiated and uncertainty as to the different forms of exit, be it the Norwegian, Swiss or Turkish model. He will have to reflect with his colleagues on the damage now being done by that uncertainty.

[Mr Philip Hollobone (Kettering) (Con)]

I note that the Secretary of State did not answer any of the questions asked by my hon. Friend the Member for Shipley (Philip Davies), because he is embarrassed by the answers he would have to give the House. It is my strongly held view that Britain would be better off out of the European Union, because we would be able to control our immigration and save the £10 billion a year membership fee. Given that we do have a massive and growing trade deficit with Europe—those countries sell us more than we sell them—is it not a complete myth that trade with Europe would stop were we to leave the EU?

[Vince Cable]

Of course it entirely depends what the alternative arrangements are, and I have never been terribly clear what those people who want to leave are actually seeking. If we had a Norwegian solution, we would still have the immigration movements. If we had a Swiss agreement, there would be a substantial degree of integration. I think that what many Members who want to leave the EU are asking for is an arrangement such as that prevailing with Turkey, under which there is minimal commitment to a single market but very few of the benefits of membership.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 8th January 2015 Commons Chamber

[Vince Cable]

It is precisely because of that revenue wedge that the Government have invested so much resource in lifting the threshold so that low-paid workers are not caught in taxation. That has substantially alleviated the pressure on the living standards of low-paid workers.

[Mr Philip Hollobone (Kettering) (Con)]

It is really very important that minimum wage legislation is enforced, as those in receipt of the minimum wage tend to be at the bottom of organisations and among the lowest paid. What sanctions are being used on those at the top of organisations who receive the highest pay—the board directors—when minimum wage legislation is not being followed?

[Vince Cable]

There is a legitimate concern about high pay as well as low pay, which is why the Government introduced reforms of executive pay, with a binding vote on executive pay by shareholders, significantly strengthening the Government’s powers to ensure that shareholders exercise proper responsibility over top pay.

--- Later in debate ---

[Vince Cable]

We understand the importance of that question. One of the sectoral groups in our industrial strategy is specifically concerned with the oil and gas supply chain. The companies around Aberdeen in particular are among the world leaders and could be seriously hit by the contraction of investment. Certainly, we will be getting that group together quickly and making an assessment of what it means. It is important to think long term, of course, as much of the industry does; temporary fluctuations in price are not necessarily as damaging as the hon. Gentleman might believe.

[Mr Philip Hollobone (Kettering) (Con)]

In 2010, the European Union sold to this country £28 billion more in goods than we sold to it. By the end of 2013, this massive figure had risen to £56 billion. Over that period, however, unemployment in this country has fallen significantly. Does that not destroy the Liberal Democrat myth that 3 million UK jobs are dependent on EU membership?

[Vince Cable]

What an extraordinarily primitive view of economics to believe in narrow bilateral balances of trade! One thing that should be said is that we are dealing, of course, not just in goods, but in services, where Britain has a major competitive advantage.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 26th June 2014 Commons Chamber

[Vince Cable]

On the hon. Lady’s first point about women in senior roles in Government—of course I want to add again compliments to my colleague—she may have noticed that the last of the FTSE companies that did not have a woman on the board, Glencore, has listened to our clear advice that it should proceed, and Mr Glasenberg appointed a woman director this morning. On the £30 million, which is of course the local fund that was hitherto administered through the local enterprise partnership but will come under the local growth fund when it is available from 2015-16, the local enterprise partnership will have discretion over how to use the funding available to it. I am sure that it will, as before, continue to support development in Hull.

[Mr Philip Hollobone (Kettering) (Con)]

For Kettering’s sustainable urban extension to be sustainable, the Department for Transport says that a new junction on the A14 called junction 10A is required at a cost of £39 million. That is supported by both the Northamptonshire LEP and the South-East Midlands LEP. Given that the junction could release economic activity worth up to £1 billion under the Treasury green book rules, will the Secretary of State look favourably at this bid from Kettering for this new road junction?

[Vince Cable]

That is an issue that the Minister of State, my right hon. Friend the Member for Sevenoaks (Michael Fallon), the Department for Transport and I will have to examine. As I understand it, under the arrangements that will prevail in 2015, this is very much a matter for the two LEPs involved to exercise their priorities.

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[Vince Cable]

We will have an opportunity to discuss this in detail, because an open register of beneficial ownership will be one of the elements in the small business Bill. Britain will pioneer work in this area. Of course there are issues with our offshore territories. We are not a colonial power that can send in gunboats to solve these problems; we rely on persuasion, and that is what we will do.

[Mr Philip Hollobone (Kettering) (Con)]

What does the Secretary regard as his finest achievement in office? What is his main goal for his last year in the Department?

[Vince Cable]

There is a very long list of achievements that would bore the House considerably were I to dwell excessively on it, but the set of advances that we have made in giving business a long-term perspective through the industrial strategy, the collaboration with business and the associated work that we have done on access to finance, the build up of apprenticeships and the developments in innovation through the Catapult make up a considerable legacy of achievement.

AstraZeneca (Pfizer Bid)

Debate between Vince Cable and Philip Hollobone

Tuesday 6th May 2014 Commons Chamber

[Vince Cable]

The hon. Gentleman is making an exaggerated contrast between the two companies, but he is right to say that AstraZeneca has an ambitious and attractive long-term investment plan. We have encouraged that as part of the industrial strategy, and we want to see it fulfilled.

[Mr Philip Hollobone (Kettering) (Con)]

Will the Secretary of State confirm that if the public interest test is applied, it will ultimately be a decision for the European Commission?

[Vince Cable]

I have already quoted a former Labour Minister, the hon. Member for Wrexham (Ian Lucas), explaining the key role that the European Commission applies in this area.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 10th April 2014 Commons Chamber

[Vince Cable]

The Northern Ireland Executive is doing an excellent job in attracting inward investment. I have been to see some of these high-tech companies. The Titanic quarter is a good example of the growth that is taking place. I am delighted to hear the news that the right hon. Gentleman has announced. We are certainly happy to continue to work with the Executive.

[Mr Philip Hollobone (Kettering) (Con)]

My constituents in Kettering were very worried when told by the Opposition that 1 million jobs would be lost in this country as a result of the Government’s attempt to rebalance the economy. Does the Secretary of State therefore share my delight in the latest figures from HM Treasury showing that since 2010 an extra 4,800 jobs have been created in Kettering—a massive 11% increase?

[Vince Cable]

My hon. Friend describes a trend that is apparent across the country. As I said a few moments ago, almost half a million new jobs were created last year, and I am delighted that Kettering is sharing in that positive story.

--- Later in debate ---

[Vince Cable]

We are perfectly happy to provide information where it is available. It is obviously easy to quantify jobs created in projects. Collecting a vast inventory of information on fluctuating wages is a much more difficult proposition.

[Mr Philip Hollobone (Kettering) (Con)]

May I commend to the Secretary of State “A Blueprint for Britain: openness not isolation” by Iain Mansfield who is a former employee of his Department? It was the winner of the prestigious Brexit prize by the Institute of Economic Affairs, and it concludes that

“if the right measures are taken the UK can be confident of a healthy long-term economic outlook outside the EU.”

[Vince Cable]

To correct the hon. Gentleman slightly, I think the gentleman concerned is employed by UK Trade & Investment, and he wrote this in his personal capacity, and it is perfectly reasonable to do so. I look forward to responding to his essay, which seems to me fundamentally mistaken, but no doubt we will argue about that.

Royal Mail

Debate between Vince Cable and Philip Hollobone

Tuesday 1st April 2014 Commons Chamber

[Vince Cable]

I do not think that is a matter for me.

[Mr Philip Hollobone (Kettering) (Con)]

One of the most attractive features of Royal Mail privatisation has been the increase in employee share ownership. I am particularly pleased that free shares were issued to postmen and postwomen, especially the hard-working posties in Kettering. Will the Business Secretary tell the House how much the average stake that Kettering posties have in Royal Mail is now worth?

[Vince Cable]

As I said a few moments ago, the average stake is estimated to be roughly £4,000.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 6th March 2014 Commons Chamber

[Vince Cable]

UKTI is now regarded as an excellent service for business. It has a dedicated unit devoted to high-value opportunities and big inward investment in the UK. I visited India recently and met a substantial number of Indian companies, both in the service sector, such as call centres, and in manufacturing, such as aerospace, that are targeting the UK to re-shore production here from India.

[Mr Philip Hollobone (Kettering) (Con)]

Tomorrow in Kettering, with local employers, Tresham institute will launch Experience Kettering, a workplace experience scheme for hard-to-place young people aged 18 to 24. Would the Skills Minister congratulate Tresham institute on this initiative and send some words of encouragement?

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 23rd January 2014 Commons Chamber

[Vince Cable]

I thank the hon. Lady and her colleagues from the potteries who have been to see me about this specific issue. Apparently, there was a meeting of what I think is called COREPER on Monday, but no agreement was reached. There is a divided view on the role of mandatory regulation to deal with this problem. I take a close interest in this matter, and I will follow it up.

[Mr Philip Hollobone (Kettering) (Con)]

For the 150,000 posties who are now shareholders in Royal Mail, will the Secretary of State or the Post Office Minister tell us what the average value of their individual shareholdings was at flotation and what their average value is now?

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 5th December 2013 Commons Chamber

[Vince Cable]

I am very sympathetic to the business groups that have consistently made representations over the past few months to say that business rates are a major burden. This Department has certainly made it clear that we regard it as a major issue. The hon. Gentleman will have to wait for an hour or so to find out what the Chancellor is doing about it.

[Mr Philip Hollobone (Kettering) (Con)]

5. How many regulations affecting small businesses the Government have (a) introduced and (b) removed since May 2010.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 24th October 2013 Commons Chamber

[Vince Cable]

The hon. Gentleman seems to have forgotten the record of the last Government. I distinctly remember that in one of the last pieces of legislation that I dealt with in the previous Parliament, the Government started to impose business rates on empty property. That was a few months before the collapse in the commercial property market.

[Mr Philip Hollobone (Kettering) (Con)]

2. How many and what proportion of employees of Royal Mail opted out of the allocation of free shares.

[The Secretary of State for Business, Innovation and Skills (Vince Cable)]

Of the approximately 150,000 employees who were eligible for free employee shares, only 372 opted out of the scheme. Therefore, 99.75% of employees have accepted the shares that we offered them.

[Mr Hollobone]

Is not the number of posties who have opted out of the scheme remarkably low? Despite the threats of industrial action and union militancy, is it not clear that the vast majority of Royal Mail employees have accepted the invitation from Her Majesty’s Government to take part in the biggest employee share scheme of any major privatisation?

[Vince Cable]

Yes, it is a very positive story. The engagement of almost every employee of Royal Mail is extremely encouraging. I seem to remember that under the last Labour Government we lost in the order of 2 million working days through industrial action in every single year. This is a big change for the better.

Royal Mail

Debate between Vince Cable and Philip Hollobone

Wednesday 10th July 2013 Commons Chamber

[Vince Cable]

We have devoted four to five years of parliamentary time to reflecting on this process, and we are now doing something about it. The hon. Lady includes bodies such as the National Federation of SubPostmasters in her roll call of institutions, but this announcement has nothing to do with the Post Office, which remains under public ownership and is supported in the ways I have described.

[Mr Philip Hollobone (Kettering) (Con)]

Will the Secretary of State confirm to Royal Mail employees in Kettering that under these proposals they face a 9% pay deal, that the change in ownership will not trigger any change in their terms and conditions, that they will be entitled to their fair share of up to 10% free shares in the new business, and that they will be part of the biggest employee share scheme of any major privatisation?

[Vince Cable]

The hon. Gentleman summarises the benefits admirably, and I would be amazed if, when they sit down and reflect calmly, members of the Communications Workers Union do not see it the same way.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 21st March 2013 Commons Chamber

[Vince Cable]

We are being extremely energetic in promoting that agenda. It is certainly true, as the Office for Budget Responsibility has made clear, that the slow-down in the British economy was primarily due to the failure in net exports. In our major export markets, zero or negative growth has been a significant factor. As I said in my first answer, we have very rapid growth in exports to some of the big emerging markets. A lot of that is due to the supportive efforts that are being made not only by British business but by Ministers, including me.

[Mr Philip Hollobone (Kettering) (Con)]

Is it not a serious source of concern that while we have a £20 billion trade surplus with the rest of the world, we have a £48 billion trade deficit with the European Union?

[Vince Cable]

Yes, it is a source of concern. We now have the benefits of a much more competitive exchange rate, and given the efforts that we are making to promote British exports and import competing industries, I would expect that deficit to narrow.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 20th December 2012 Commons Chamber

[Vince Cable]

Certainly, the construction industry has had a torrid time ever since the collapse of the bubble in residential and commercial property. I know that there is a lot of distress in the sector, but there is some indication of orders improving. As the hon. Gentleman knows, the Government have taken action in the past few months. In September, we launched the programme of guarantees for social housing bodies to proceed with construction and raise capital for that purpose, and the autumn statement announced £5.5 billion-worth of new commitments, mainly through guarantees, for infrastructure projects.

[Mr Philip Hollobone (Kettering) (Con)]

The Government themselves procure construction projects. A local business in my Kettering constituency is the sub-contractor on a major Ministry of Defence contract, yet its payment terms from the principal contractor have gone up from 60 days to 90 days to 120 days. Will the Secretary of State work with other Government Departments to make sure that sub-contractors are paid on time?

Office for Fair Access

Debate between Vince Cable and Philip Hollobone

Monday 20th February 2012 Commons Chamber

[Vince Cable]

Yes, we will do that. As I understand it, this does not require legislation, and we are looking at the feasibility of doing that and how to get the best advantage from it.

[Mr Philip Hollobone (Kettering) (Con)]

Given that explaining the Government’s new access arrangements and the new tuition fee regime is a complicated task at best, why is the Secretary of State prepared to appoint somebody who has doubtful presentation skills?

[Vince Cable]

He may well have had doubtful presentation skills on this particular occasion, but he is the spokesman for a substantial group of universities, million+, and I do not think that that undermines his ability to present his case.

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 14th July 2011 Commons Chamber

[Vince Cable]

I can neither confirm nor deny that; I will certainly investigate it.

[Mr Philip Hollobone (Kettering) (Con)]

Given that Northamptonshire has one of the fastest-growing populations in the country and that it sits at the crossroads of England, will the business Minister look favourably at the bid that is now on his desk to establish a local enterprise partnership there?

Oral Answers to Questions

Debate between Vince Cable and Philip Hollobone

Thursday 13th January 2011 Commons Chamber

[Vince Cable]

The right hon. Gentleman poses the problem absolutely correctly. The reason why bonuses are an issue—they are not one to anything like the same degree in other industries—is that some banks are publicly owned and others are guaranteed. The remedy lies in the work of the Independent Commission on Banking, which reported last year on issues such as generating competition and the possible break-up of particular institutions.

[Mr Philip Hollobone (Kettering) (Con)]

May I say to the Secretary of State that big bank bonuses are entirely inappropriate when lending to small and medium-sized enterprises is not taking place as it should? Only this week I was told of a business franchisee in Kettering who was told by Barclays bank that his account, which had been in credit for five years, would be closed unless he paid an annual fee of £25,000 because of spurious new audit requirements—which, when he looked into it, were completely false. He has been lied to by Barclays bank, and its chief executive should not get a bonus.

[Vince Cable]

Indeed, it would help if bonuses, where they exist, reflected performance in lending to the good companies that my hon. Friend describes. That is precisely why the Chancellor and I are discussing how we will ensure a proper flow of credit to those excellent enterprises, which are the backbone of our economy.